LONDON: The Middle East and North Africa region’s pay-TV revenues are set to fall $1.6 billion by 2029, a report by market analysis firm Digital TV Research revealed on Monday.
The study attributed this 43 percent drop to $2.2 billion to the increasing popularity of over-the-top media services and the issue of piracy in the region.
“Legitimate pay-TV penetration has always been low in most MENA countries, but the decline is accelerating as pay-TV subscribers convert to OTT platforms,” said Simon Murray, principal analyst at Digital TV Research.
Between 2016 and 2020, pay-TV revenues for the 20 countries in the MENA region experienced a 14 percent decline, dropping to $2.74 billion.
The forecast indicated a continued slow decline, reaching $2.52 billion in 2026, reflecting a 23 percent fall compared to 2016.
Murray highlighted that by 2026, five countries — Saudi Arabia, the UAE, Egypt, Turkiye and Israel — will contribute 78 percent of the region’s pay TV revenues in 2026.
“There are few winners,” he added. “Eight of the 20 countries will lose revenues between 2020 and 2026.”
Despite an anticipated increase in pay-TV subscribers, expected to surge by 3 million between 2023 and 2029, reaching a total of 18 million, the report suggested that 13 out of the 20 countries are poised to experience revenue losses.
Turkiye and Israel are predicted to contribute almost half of the total pay-TV revenues for the year 2029, with Turkish revenue accounting for a total of $707 million, while pay-TV revenue in Israel will drop to $376 million over the same period.
Pay-TV revenue in the UAE will be $270 million in 2029, with Saudi Arabia standing at $192 million and Kazakhstan at $142 million.
Other Arabic-speaking countries combined will total $302 million, while the remaining MENA countries will see a combined total of $216 million.
